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The
amendment in Haryana Tax on Entry of Goods into
Local Areas Act, 2008, will help the state in
consolidating and strengthening the tax base under
the Act, said a spokesman of the government.
The purpose behind favouring an amendment in the Act
was to bring within the ambit of taxation the
activity of sale, especially on sugar being imported
into Haryana from outside.
The decision in this direction was taken as imports
were adversely affecting the domestic trade and
sugar manufacturing industry.
The state tax is proposed to be levied on entry of
goods, especially petroleum-based fuels like petrol
and diesel, into local areas at a higher rate, so
that the combined effect of tax on interstate
purchases and entry tax is at par with VAT rate
applicable under the Haryana VAT Act.
This provision is introduced with a view to plug the
import of diesel and other petroleum-based fuels by
the industries or other commercial units at
concessional rate against form 'C', which undermine
the revenue base of the state.
The gravity of the issue may further aggravate with
the phasing out of the central sales
tax (CST).
Further, in case of petroleum-based fuels, diversion
of such fuels in non-manufacturing activities,
including for private vehicles, and consumption for
office and domestic use, cannot be ruled out and
hence entry tax at the higher rate (difference of
VAT rate and CST rate) may have been the only device
left with the state to curb such practices.
Source
: Times of India - India, dated 04/09/2008
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